Which One of the Following Types of Operations Would Be

question 47

Multiple Choice

Which one of the following types of operations would be subject to the most political risk if the operation were conducted outside of a firm's home country?

• A)accounting and payroll functions
• B)partial assembly of components manufactured in the firm's home country
• C)military weapons manufacturing
• D)packing materials manufacturing for use by the home country firm
• E)production of minor parts, such as nuts and bolts, for use by the home country firm

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Definitions:

Job Order Cost System

An accounting system that accumulates costs for each individual job or batch of goods, tracking direct labor, direct materials, and overhead.

Process Cost Systems

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion, assigning costs to units of product based on the processes they go through.

Specialized Machine

Machinery designed to perform a specific task or function in a manufacturing or production process.

Work in Process Accounts

Accounts that track the costs associated with unfinished goods that are in the process of being manufactured.